Innova Capital exits its investment in Flokk Group
At the beginning of May, Innova Capital, a leading private equity firm in CEE, closed the sale of its equity stake in Flokk Group - the largest European office seating manufacturer.
Innova and its minority co-investors have sold their shares as part of a larger deal that saw Triton Fund IV, the majority investor in Flokk, sell four of its portfolio companies – Assemblin, EQOS, Flokk and Unica – to the newly-formed Triton IV Continuation Fund (“TIV CF”).
Back in July 2017, Innova Capital acquired a 74% stake in Profim, a Polish market leader in office seating. Then, in April 2018, Profim was acquired in a share deal by Flokk, leading to Innova Capital becoming an almost 20% shareholder in the enlarged entity.
Following further acquisitions in the United States and United Kingdom, Flokk Group solidified its position as the undisputed leader in the European office seating market, offering a range of award-winning sustainable products and managing a fully comprehensive portfolio of brands including HÅG, RH, BMA, RBM, Giroflex, Offecct, Profim, 9to5 Seating and Connection.
“The last 5 years with Profim and Flokk have been an impressive business journey. Once again, Innova portfolio company has become a pan-regional business leader thanks to a highly synergistic string of M&A transactions and well-executed integration. I’m very thankful to the founders of Profim for their trust and continued support in this complex international consolidation project,” says Andrzej Bartos, Senior Partner at Innova, representing the fund on the Flokk non-executive board. “I would also like to thank and congratulate the management team at Flokk, and our partners at Triton, for such good collaboration and a highly successful partnership,” he adds.
“On behalf of the Flokk management, I would like to thank all the Innova team for their support and advice in the successful process of integrating with Profim and further acquisitions,” said Lars Røiri, the Chief Executive Officer of Flokk Group.
Ryszard Rychlik, one of the founders and the CEO of Profim until Innova’s acquisition of the company, said, “Innova Capital paved the way for the gradual succession of Profim’s founders and skilfully pulled off an attractive business tie-up with Flokk, proving its strength in international consolidation.”
The sale of Flokk marks the final exit transaction from the Innova/5 portfolio, the successful investment vehicle raised by Innova Capital in 2010.